Foresight Energy (FELP) Shares Up as High as 55% Today

Stephen L Kanaval  |

When most people think of coal mining, they think of the Appalachian Mountains and the West Virginian families who have braved the mines for many years. But, what if I told you that Illinois was a mining hot spot? Foresight Energy (FELP) and its Principal Strategy Officer Chris Cline are fighting to turn the Illinois Basin into the next big coal mining project.

Currently, Foresight Energy controls over 3 billion tons of coal reserves in the Illinois Basin, and trading was heavy on Wednesday on the news that the company might close a deal to avoid bankruptcy. Billionaire Cline would inject cash to repay creditors as part of the deal, according to sources cited by Bloomberg. About 3.28 million of Foresight's shares were traded by this afternoon compared to its average volume of 189,619 shares per day.

Foresight has an extension until the 15th of this month to resolve the dispute with creditors. As the coal world was rocked by the announcement that Peabody Energy Corporation (BTU) filed for bankruptcy, Foresight was riding the hope that Cline’s cash would save the company with $250 million going to its bondholders. He might also inject capital into one of the company’s major stakeholders, Murray Energy Corp. However, the same Bloomberg sources stress that nothing about this deal is final, but there are two days left to work out the details.

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